Did Jerome Powell and The Federal Reserve push markets too hard?
Sales of existing single-family houses, townhouses, condos, and co-ops that closed in January dropped by 4.9% from December, seasonally adjusted, to an annual rate of 4.08 million sales, according to the National Association of Realtors today.
This rate of sales was up just 2.0% from the abysmally low levels a year ago – 2024 as a whole had been the worst sales year since 1995 – and flat with the abysmally low levels two years ago.
Compared to January 2021, the sales rate was down by 36%, compared to January 2019, the sales rate was down by 25%
On a NON seasonally adjusted basis, things look even more grim.
Active inventory is up 27.6% YoY. As mortgage rates are projected to rise, things can get worse.
Mortgage rates continue to hover around 7%. Mortgage rates rose 164% under Biden!
Maybe if Fed Chair Jerome Powell is forced to wear Sky Saxon of The Seed’s wizard outfit, he will improve his policies.